PGCIL to raise Rs 200 crore from bond market

New Delhi, Dec 10 : After raising Rs 760 crore from the bond market last month to fund the ongoing 17 transmission projects, PowerGrid Corporation Ltd (PGCIL) is planning to hit the market again to mop-up up to Rs 200 crore in the current financial year.

“We will be raising Rs 200 crore from the bond market. We are planning to enter the market some time in February 2002,” PGCIL chairman and managing director RP Singh told PTI.

Last month, PGCIL had approached the bond market to raise Rs 456 crore, he said, adding the issue was oversubscribed and got Rs 760 crore. The corporation has decided to retain the entire amount.

“Despite the slowdown in the economy and slackening in generation capacity addition programme, PGCIL’s budget utilisation has been quite impressive,” Mr Singh said while pointing out that the utilisation during the current financial year has been envisaged to be Rs 2,422 crore. The budget utilisation was Rs 1,603 crore in 2000-2001.

The corporation also received direct loan of $450 million from the World Bank. “Proceeds from the World Bank and the domestic market will be utilised for funding the construction programme and retire higher cost debt,” he added.

The last bond issue of Rs 456 crore was taxable bonds on private placement basis and the issue was accorded AAA rating by both credit rating agencies Icra and Crisil.

In its endeavour to improve financial health of the corporation, PGCIL is likely to save up to Rs 1,500 crore by completing the ongoing 17 projects ahead of schedule.

“At least five transmission projects are likely to be completed up to 12 months ahead of and another four by between three to six months. We are expecting to save 25 per cent cost across-the-board by implementing these projects,” Mr Singh said.

The corporation has also warned the defaulting states of Assam, Bihar, Delhi and Uttar Pradesh to clear up their outstandings or face the power cut. These four states have an oustanding of Rs 855 crore. (PTI)